MINUTES – PUBLIC – LAND USE PLANNING AND HOUSING COMMISSION (CDTH) – 2nd meeting 2025 – March 12, 2025 – 3:03 p.m. to 4:37 p.m.

6. Presentation of the Affordable Housing Strategy (SLA) – Information and discussion

Stefan Reyburn, project coordinator, Housing, programs and agreements for the Urban Planning and Sustainable Development Service (SUDD), presents the Affordable Housing Strategy (SLA) for information and discussion. He is accompanied by Thierry Belinga, head of the Housing, programs and agreements division at SUDD, and by Mr. Marco Pilon, assistant director of the same service. The progress of actions stemming from the Affordable Housing Strategy and the prospects for implementation are presented to the members. It is recalled that it has been adopted since July 2023 (CM-2023-518) and that it is structured around 6 structuring axes of intervention which are detailed in the session. The Service informs the members that a dashboard, designed to track the evolution of the SLA's implementation, is currently being prepared. The presenter explains that the SLA is a "City" strategy that concerns the entire affordable housing ecosystem of which Gatineau is a part. As the presentation underwent minor adjustments, the version presented will be transmitted to the members following the meeting by correspondence and available on the Ville de Gatineau website.

Discussion period

General comments Thanks are addressed to Mr. Reyburn and the SUDD resource persons for the presentation and their expertise. Members find the current approach more innovative now, and some are surprised that certain elements discussed in 2022 are now included in the SLA. The scope is broader at this time. The presenter specifies that the current legal context, in connection with new housing powers, now allows for working on new tools supporting the SLA.

Private sector It is important to emphasize first that although the integration of affordable housing in the private sector is desired, it does not seem realistic for some to ask the private sector, considering their capacity and feasibility, to generate affordable housing and achieve the objectives of the current Strategy. Emphasis should be placed on subsidized social housing and cooperatives (non-market housing) and the preservation of existing affordable housing on the territory of Gatineau (construction costs having increased). The issue of affordability in the private sector must be taken into account. It is mentioned that the current crisis is really at the level of social and rental housing (because there is a shortage and costs have exploded). A member explains that they are very interested in a strategy for inserting social and affordable housing with private developers, notably with the City's alignment on existing and enhanced programs with tax credits and incentive zoning. The developer would have an interest in inserting affordable and social housing. They mention that it would be important to make good use of the advantages of Loi 31, which allows for incentive zoning to further densify certain sectors (public transit areas in particular).

Target for affordable housing A question is asked as to whether the City has a target to promote non-market, social, or affordable housing? If so, does this target exist for the real estate stock as a whole or based on new housing to be built? The Service explains that for now, this discussion is ongoing; the target has not yet been determined. Members are informed that other municipalities have adopted a target to this effect. It is also explained that a movement led by the Union des municipalités du Québec (UMQ) is currently soliciting the ministère des Affaires municipales et de l’Habitation (MAMH) so that a target of 20% of the overall real estate stock be added to the Stratégie québécoise en habitation (a target that would be non-profit, non-market housing).

Right of first refusal: A discussion ensues regarding the right of first refusal. There is questioning as to when the City would be ready to implement it. There is a sense of urgency regarding the identification, for conservation purposes, of naturally affordable private land or housing for sale or potential. The right of first refusal would be an avenue to consider to acquire private housing with the goal of recovering them or reselling them to social housing organizations. The example of the sale of the Immeubles Tassé is named. It is also explained that Montreal (project in Côte-des-Neiges) acquired several hundred existing and private housing units by subjecting them to the right of first refusal. Their goal is to resell them to social housing organizations afterward to protect them from rent increases and speculation. Regarding the question of Immeubles Tassé, it is mentioned that it was not the right example, inoperative in that case, but the City could have acted upstream by formally supporting the offer submitted by the Fondation CARGO. We could have acquired the real estate stock and sheltered it from speculation and made it as operational as possible. We also question when we will have the criteria regarding the right of first refusal. The Service explains that a structuring axis of the SLA is to identify naturally affordable real estate stock and remove housing at risk of being lost from the market. The SUDD explains that it would like to add criteria to the current regulation in force (existing since 2023). The criteria must be defined; a draft is already developed. Removing naturally affordable housing from the speculative market is part of it. The sense of urgency mentioned is shared. As for the example of Immeubles Tassé, the chair explains that if it had been possible, it would definitely have been done. The right of first refusal cannot be applied in the case of an organization whose foundation is based on shares, as was the case for Immeubles Tassé, hence the issue. The Service explains that there will be other opportunities and that they will be ready in the future to act in situations where it is applicable.

Policy on acquisition, disposition of assets, and emphyteusis A question is asked about the sale of land or buildings. It would seem that there are few criteria or vision currently and that there is an opportunity in the planning of the sale of assets belonging to the City. This seems to boil down to respecting the criteria "compliant projects, at best prices, without criteria." It is explained that there had been issues regarding the addition of criteria for social and affordable housing previously. The approach of putting social or affordable housing criteria in projects when the City disposes of land is necessary. The Service explains that non-profit organizations (OBNL) have a specific provision (12.1, 12.2) in the policy on the acquisition of assets (PO-029) which grants them certain advantages. It could be possible to explore the possibility of improving the policy, particularly in sales and acquisitions to offer opportunities more equitably to developers of OBNL projects. The goal is to emphasize or prioritize non-market housing projects. The City should further support this type of project by making the land in its land reserve available to them. It could be explored to add the option of emphyteusis (e.g., Gatineau airport) to the policy. The added value of the land would be preserved and would increase with inflation and the rise in market values. This formula could be exceptional for developers of OBNL projects. The City could recover everything if needed in case of necessity. This could certainly be added to the policy. A member mentions that the emphyteutic lease serves to reduce the cost of housing since the cost of land acquisition is zero. This approach contributes to supporting housing affordability and must be put forward more.

Letter of guarantee A member informs the Service that it is often difficult for organizations to acquire land for OBNL to carry out social housing projects. Sometimes, it is the guarantee or the available funds that are an obstacle. The possibility of seeking loans or having access to certain funds exists, but the guarantee is necessary. We therefore wish to verify if the issuance of letters could be an avenue to explore, in order to allow organizations to carry out acquisitions. It would be one more tool to support them in their process and their autonomy. The SUDD explains having never had a request from OBNL in this sense before. It is, however, an excellent idea that is noted. An administrative follow-up will be done to explore this possibility and the feasibility of issuing a letter of guarantee. The Service mentions that usually, a letter of support for projects is transmitted to developers by the City when there is a submission of the project as part of a PHAQ call for projects (selection process of the SHQ). As additional information, the chair informs the members that letters of guarantee should, with all reservations, be integrated into the process in connection with the future Plancher program, a financial tool serving as a lever in the development of new affordable housing units. A follow-up can be done when it is the right time regarding this question.

Notion of affordability and municipal powers For one of the members, there is confusion in the public and media sphere regarding the notion of affordability. The terms social and affordable do not have the same meaning. Affordability is of variable geometry depending on whether it is defined according to supply or demand. It is mentioned that the affordable housing strategy, abbreviated SLA, is positioned at the level of supply more than demand and that it is perhaps not positioned in the right place or under the prism of supply and energy efficiency. We also explain the complexity of the border reality which increases the price upward in the calculations of the median price. Even for a middle-class household in Gatineau, it is difficult to acquire or rent adequate and affordable housing. With the Accès logis program, we take into account the overall reality of tenants (approximately 25% of the household's gross income for rent) and offer them community support in connection with housing. We must not lose sight of the fact that this community support is very important for tenants who count among the most vulnerable population.

Related costs A member explains that it is important to also take into account related costs (e.g., electricity, energy) when it comes to affordability. These will certainly increase in the current context. Affordability is therefore also a question of energy costs. A housing strategy including this question is necessary and the CREDDO can support the City in its reflections. Removing naturally affordable housing from the speculative market also has a cost in terms of related costs. We must think about methods to renovate while maintaining affordable and inclusive costs. We must think about how to recover buildings. A characterization of the real estate stock is necessary to identify what can be taken back and at what costs. The carbon cost of buildings must also be considered in compliance with commitments for climate issues. Financial support or reflections are to be undertaken with various actors, including Hydro-Québec, which has a team working specifically on the question of vulnerable clienteles. This would be to explore. It is desired to make an alignment with the team of the Ecological Transition Service regarding the angle of efficiency and energy transition, the characterization of the real estate stock, renovation methods, etc., in connection with affordability.

Collaboration with local actors Overall, it is mentioned that a strategy for inserting affordable and social housing, with private developers, is interesting and must be aligned with the City's objectives. The importance of a structured collaboration approach by the City with private developers and housing builders is required. We must ensure greater predictability of the City's requests and facilitate the project approval process and avoid delays. A culture change is required. Requests must be made upstream, as planned, so that all needs in connection with the SLA are known and taken into account. The analysis of the preliminary project remains an essential tool in a dynamic context. The work of collaboration and support for private developers would make it possible to ensure that we are able, with all reservations, to build affordable and social housing (existing tools: APH Sélect or the PHAQ and fiscalized funds). It is mentioned that potential partners for funding sources also include the Fonds Transition Climatique Ottawa (FACO). Substantial financial packages are needed to act on the market at the right time. The city must be more proactive.

Presentation of the Montreal Inclusion Regulation The vice-chair wishes that a presentation of the Inclusion Regulation of the Ville de Montréal and the findings of its application be eventually made to the members of the CDTH. The evolution of this project and the meeting of the initial objectives would make it possible to clarify the plan and the Strategy for Gatineau. The Service takes note and will follow up to this effect.

Energy efficiency of buildings: The real estate stock of the Ville de Gatineau being aging, it is put forward that the cost of renovations is added to household expenses. The vice-chair mentions that at the CELCC and in the Climate Plan, we are looking at how we can support this. We should explore the angle of regulation. The example of the PACE program, a federal financing program applied in other provinces where renovations are put on property tax and not on household mortgages, is named.

Financing programs We wonder if federal financing programs for the construction of affordable housing are available for Cities. The Service explains that no. The Service explains that SCHL products (APH Sélect) support a large number of housing starts here for example. Three components are taken into account in the criteria: affordability, eco-efficiency, and accessibility. These are private data. To benefit from them, developers who appeal to them must submit to a scoring system administered by the SCHL. The vice-chair mentions that it is important to signal to elected officials if there are issues with the granting of subsidies at the level of other levels of government.

Analysis of available municipal land The vice-chair wonders if we have City land to cede for projects currently. The Service says that there is not much left. We must explore the potential land of the 8 surplus arenas (several tens of hectares), which have a right to build in height and potential density. Everything is under analysis by the Real Estate Assets Service and the Recreation, Sports and Community Development Service. A member explains that the Guertin and Fonderie lands are exceptional sites for a diversity of initiatives. We will have to wait for consultations among others for Guertin, but what about the development of the Fonderie following its decontamination?

Diversification of income and the question of incentive zoning The diversification of income is at the heart of municipal discussions. The question is among others addressed at the Finance Committee. We wonder how we are going to create an additional fund for housing. Can the Compensation Fund for filling in wetlands be used? It is mentioned that no. The climate crisis and the housing crisis must not be in competition and are both important; the mentioned fund is provincial and specific. Incentive zoning would be one of the possibilities according to the chair for the implementation of a fund. It is mentioned that the Ville de Longueuil has set up a fund, from development. We give the right to build additional floors in exchange for a contribution (specific price per square foot). 100% of the Fund is used for the realization of affordable housing projects. This was done in collaboration with local developers, and this innovative municipal solution also responds to the issue of densification. A member suggests discussing with Mayor Fournier to have more details on this subject. The vice-chair invites the SUDD to participate, if possible or desired, in the current discussion regarding the diversification of income. This could be complementary and enlightening.

A member highlights the need to be agile to allow for pilot projects among others with energy efficiency technology that some suppliers wish to establish in Quebec (e.g., retrofit material and prefabricated panels). Some developers do not see how, financially, they could properly renovate these market housing units while ensuring profitability. How can we work with housing owners who wish to dispose of their assets in order to encourage developers and support them for the acquisition of these and the renovation of the housing? The Service explains having tools and that we must target naturally affordable housing (SHQ grid as a reference to establish required rents and income ceilings for households eligible for housing), and identify their location on the territory. The government must intervene to ensure healthiness and acceptable living conditions, however. The City must set up a substantial fund for this (financial package), which is part of the success conditions of the SLA presented. The CREDDO reiterates its support for the search for funding in connection with the renovation of affordable housing.

AirBnB The chair is in favor of a municipal rent registry regarding rentals in mandatory private residences (AirBnB-type rental, except in summer). We must go further in Gatineau on this subject. The chair asks that a follow-up be done, at a future meeting, to indicate the progress of the Affordable Housing Strategy file, for information purposes, if applicable.